hnd经济学1微观经济学outcome1
hnd经济学1微观经济学outcome1
Table of Contents1.0Introduction (1)2.0 Oligopoly (1)●Entry barriers (1)●Non-price competition (1)3.0 Explanation for Diagram in Oligopoly (2)4.0 Pure Competitive Market (3)●Lower prices (3)●Low barriers to entry (3)5.0 Explanation for Diagram in Pure Competitive Market (3)6.0 Roles of Profit in Market Economy (4)●Demand for factor resources (4)●Market Entry (5)7.0 The other two alternatives to profit maximization (5)●Satisficing behaviour (5)●Sales revenue maximization (5)8.0 Influences on a Firm in the Short Run (6)9.0 References (7)1.0IntroductionMarco and Micro economic knowledge we had learned in this period is mainly to discuss about some major market structures in the entire market now. And they are oligopoly, monopoly and pure competitive market and so on. In this case, the Virgin Mobile had entered in mobile phone market in the UK, which is an oligopoly market. In this market, Orange, V odafone, BT Cellnet and One2One are the oligopolists.2.0OligopolyWhen a market or industry is dominated by a small number of sellers, we usually believe an oligopoly appears. And there are two main features of oligopoly:●Entry barriers: It’s a great block for the new company to be a long-run partof an oligopoly market. Usually, many smaller firms operate on the periphery on such s market, which means these companies cannot reach the supernormal profits or affect much to market prices and output. Take Virgin Mobile (VM) as an example: Before VM engaged in the mobile phone market in the UK, there were some industrial giants conquered the market- Orange, V odafone, BT Cellnet and One2One, which account for a large market share.Although VM is making profit, the money it earned is far less than any one of these oligopolist.●Non-price competition:As a few company be dominant to an industrial,pricing can be no longer an effective competitiveness for those oligopolistic firms. Compared with pricing, after-sales service, extension of new market and advertising seem to be more emphasized by them. In this case, the VM is better to promote the competitiveness in such ways -- improving the after-sales quality, expanding into new markets , building their own brand and so on.3.0Explanation for Diagram in OligopolyIn the oligopolistic market, the oligopolists may react diversely to the different price variation trend of their rivals. If one oligopolist raises the price and other companies will not follow it to maintain the market share, however, if the company reduce the price and other companies must follow, which is to keep more market shares. It can be seen in the kinked demand curve below.Before the price is higher than P1, the product demand is elastic that means the price raises and the total revenue will reduce. But when the price is lower than P1, the product demand is inelastic -- the price reduces and the total revenue will also do. Thus, the company may able to reach a stable profit-maximizing equilibrium at the point G, so the companies in the oligopolistic market can not change the price optionally.4.0Pure Competitive MarketIn the pure competitive market structure, the company can compete with each other perfectly. There are two common characteristics that are considered to be “competitive” are:●Lower prices: Generally, a perfectly competitive market exists whenevery participant is a "price taker"which means the suppliers will have notable to raise price for facing elastic demand curves, and no participantinfluences the price of the product it buys or sells.( /wiki/Perfect_competition#Basic_structural_characteristics ) .So simply raising price will make a loss of demand and total revenue. Thecross-price elasticity of demand can reflect the customers’ attitude towardssome particular goods. The demand of substitute goods is holding pacewith the price when it has any change. Conversely, the demand ofcomplementary goods would decrease when the price increase. In thiscondition, customers will always find the most proper goods forthemselves.●Low barriers to entry: Compared with oligopoly, the new firms wouldbe easier to enter in the pure competitive market. And the entry of newparticipants will probably provide competition and ensure price is keptlow in the long run.5.0Explanation for Diagram in Pure Competitive MarketIt is known to all that each individual firm is considered as a price taker.Customers may not prefer to buy a product with a higher price. Because of the characteristic (perfect knowledge) of pure competitive market, neither buyers nor sellers can gain an advantage and firm may sell their goods at the pointwhere they have the maximized profit.From the short run view of a firm in a pure competitive market structure, the explanation of the diagram is as follow:The price in a pure competitive market structure is decided by demand and supply, which can be seen in panel on the right. When demand rises from D1 to D2, the equilibrium point goes from A to B and P2 is the established price. Because of the price which a firm use stays at P2, marginal revenue is equal to P2 at last a verage revenue is equal to P2 as well. When MC=MR, profit maximization is achi eved, so the point which firms will stop producing should be C which ordinate is P2 and abscissa is Q2. According to the diagram above, when quantity is Q2, ATC is equal to P1. So P2 subtract P1 is average profit and then multiply by Q2 can obta in total profit.6.0Roles of Profit in Market EconomyDemand for factor resourcesScarce factor resources to flow where the expected rate of return or profit is highest. In the mobile phone market, when Richard Branson started to get profit in 2002, VM has 1,445,492 customers, which means stronger demands, more labour and capital are committed. With more scarce factor resources, VM mayable to earn more profit. However, in a recession, the output, incomes and investment for VM must all fall, which may cause the profit loss. Thus the company should take action (for example cutting costs) to preserve its market position.●Market EntryIf an individual company gets more profit than others, it must be a signal to other producers within a market that profitable entry may possible. After three-year efforts, Richard Branson made VM profiting. When it comes, many other firms would be attracted to enter the industry. Thus, the competition would be increased and new products, technologies would be also updated in a higher speed.7.0The other two alternatives to profit maximization●Satisficing behaviourSatisficing behaviour can be the substitute to profit maximization behaviour. This behavioural method lays stress on how decisions are taken within the firm. Whena decision is making, satisficing explains that individuals and groups shouldchoose the first option that is good enough to address most needs rather all. Based on Herbert Simon’s work concerning behaviour --“people possess limited cognitive ability and can exercise only ‘bounded rationality’ when making decision in complex, uncertain situations”, satisficing behaviour encourages individuals and groups to attain a more realistic goal.If VM set a goal that expending their customers to 2 million in a year, finally it reaches 2.5 million. Thus wise we can take the goal for a receivable.●Sales revenue maximizationThe goal of sales revenue maximization is to maximize the sales other than profits.The managers decision price and strategy of products. In this pattern of management, business can grow or sustain market share, ensure survival, discourage competitors, achieve bonuses and build the prestige of the seniormanagement.For the VM, when it initially entered the mobile phone market, it is a great approach that selling their products as many as possible with the lowest profit to enlarge their market share.8.0Influences on a Firm in the Short RunFrom the diagram above, which can be seen are total cost (TC) is the sum of fixed (TFC) and variable costs (TFC).In the beginning, when nothing is being produced ,the fixed costs will be equal to the total cost. The TC and TVC increase concurrently with the quantity, but they are paralleled and the distance between them is TFC which is always invariable. And total cost is an upward trend.The diagram is about the short run cost curves. One time the fixed cost is excessively used, which will lead to the progressive decrease of marginal product, meanwhile the marginal product reduce will lead to the decrease of marginal revenue. Leading the reducing of the ATC when MC<ATC, on the opposite, it will lead to the ATC's increasing. Making the short-run ATC curve look like U-shaped, on the other side, the law of diminishing returns will lead to the rise of marginal cost of production as o utput increases.When AVC increasing higher than the fall in AFC one time the output increases , whi ch the marginal cost is rising will lead to the average total cost rising9.0References( /wiki/Perfect_competition#Basic_structural_characteristics ) .。
HnD经济学导论outcome1报告
International CollegeCentral South University of Forestry and TechnologyASSIGNMENT COVER SHEETAssessment Task: _____________________________________________________________ Course Name:__________________________________ Outcome: ____________________ Prepared by:______________________________________________________ (English name) ________________________________ (Chinese name) ___________________ (Candidate Number) Class: ____________________ Name of Tutor:___________________________ Due Date: _______________ Date Submitted: ___________________Your report/essay should meet the following requirements. Please confirm this before submitting your assignment.☐Assignment is presented on A4 size paper and is tidily typed and well presented..☐Pages have been firmly stapled.☐ A copy has been retained by me.☐Declaration below is completed.DeclarationAll forms of plagiarism, cheating and unauthorized collusion are regarded seriously by the University and could result in penalties including failure in the unit and possible exclusion from the University. If you are in doubt, please contact the Unit Coordinator.Expect where I have indicated, the work I am submitting in this assignment is my own work._______________________________________ (Signature)Question1：With reference to the case study, summaries the relationship between goals, objectives and policy and advice the management of Scotia Airways of the contribution each will make to effective managerial performance.Answer1：Goal:Organizational goal is to complete the mission and purpose of the carrier organization. It is a future state that an organization strive to achieve, and it is the basis and motivation to carry out the organization's activities. Every social organization has its own intended purpose or result, it represents an organization's direction and future. For the organization, the purpose is the common goal; to the members, the common goal is to organize the stage needs to reach the destination. The organisations are usually determine the direction that it will take over the long term and are not always very specific, but some goals may be unintelligible and hard to understand.There are 4 types of organization: Operational goals, Product goals, Consumer goals, and Secondary goals.Operational goals that means increase efficiency, promote the work efficiency vigorously. Like the Scotia Airways, they have the culture of trust has been emphasized and developed by both the management and workers, and this has served to enhance the effectiveness, efficiency and overall performance of the business. When they have the awareness, team spirit, have the incentive measures, the working efficiency will increase.Product goals signify better service to consumer and higher products qualify, to ensure sustained and stable quality system. The Scotia Airways do well in this side,it offers several value added services, such as, valets to assist the passengers in boarding the plane, gourmet meals and a range of in-flight services and entertainment. And Scotia Airways is the first airline to offer full business class services, but at prices that are equivalent to the economy class of its competitors. A key driver of the success of Scotia Airways is the management focus upon the level and quality of service output.Consumer goals means satisfied the different demand from the different consumers. Scotia Airways is aimed at it, their operate scheduled flights mainly targeting business and leisure travelers and aims to provide exceptional value for money, unparalleled comfort and convenience to its passengers. It illustrated that everyone in the world is not the same, so an organization especially a company should adapt diverse needs.Secondary goals by organisations which are not the most important things that they would like to achieve but are nevertheless important. It is mainly about the social responsibility, making a profit or improving award. The Scotia Airways has been reinforced by positive management approaches and wide ranging reward policies that were agreed and supported by Trade Union representatives. And as far as possible to promote social harmony and integration, to create a better atmosphere.Object:Business objectives are more clear and specific than goals and identity the specific path to be taken in order to achieve goals. In this step, how can we do next, how quickly can we do it and how do we know when we have been successful are the important questions.The objectives should be SMART, include 5 aspects: Specific, Measurable, Attainable, Realistic and be Time-bound. These are the core of objectives’ requirements.To promote the market share increase, the airline has an increasing presence at Scotland’s main airports in Glasgow, Edinburgh and Aberdeen. And currently covers eight destinations across Europe, including Brussels, Paris, Frankfurt, Madrid, Rome, Lisbon, Amsterdam and Copenhagen as well as domestic flights to Manchester, Birmingham, Bristol and four London airports.It is also expanding to major business centers in Eastern Europe and the Middle and Far East. This several plans for improving the market share, expand the business scope is very effective.Pay more attention to suitable consumer groups is significant, too. The airline to operate flights mainly is the special value of providing funds for business and leisure travelers, incomparable comfort and convenience of passengers. To provide different services for different customer groups demand, is important to increase the performance and able to establish good relationship with customers.Policy:The policy is a require ment for the organization’s operating and transaction. It provides a guideline to channel a manager's thinking in a specific direction, it can also provide the path to complete goals and objectives. It provides a framework of rules or guidance within which management and staff can make decisions. Policies contain some different, for example, Inward investment policy, Welfare policy and Reward or Punishment policy.Inward investment policy: The equipments are freshing, all staff receives adequate training, the establishments of the new division and gain more market share are both in it.It has seen that the company expansion over resent year in many aspects and departments. Then they found new distributions in Eastern Europe and the Middle and Far East during this year.Reward or punishment policy: For the completion of the expansion target, organizations should set standards, regulations and purposes to evaluate employees' performance, and then take reactions respectively. The Scotia Airways has been reinforced by positive management approaches and wide ranging reward policies that were agreed and supported by Trade Union representatives.Relationship: The goal is the totality, it can including many objects, goals and objectives provide different kinds of requirements of organization. After make goals and objectives, the organization must have the policies to guides behavior by defining how something should be done. Suitable policies can help the organization to achieve goals and objectives, but inappropriate polices will result in bad effects and cannot complete the goals and objectives. Finally, healthy relationships among goals, objectives and policies are the basis of effective performance. The three affect each other and are both in hand.Q2: Explain the main principles of Open Systems Theory with reference to Scotia Airways.A2: The environments that are both internal and external would influenced the organization. The inter-related parts of a system can interact with the external environment. Changes in the external environment will affect the internal environment changes, the internal factors will also affect the overall changes, resulting in a chain effect.There are 4 aspects in this system. Input contains Staff, Managers, Clients orders, Bank loan and Equipment. Process contains Admin support, Allocation of projects, Communicate with clients, Promotion and Production. Output consists of High quality designs, Skilled staff,Satisfied clients and Service or product. Environment consists of Economy, Social trends, Policies, Legislation, Technology and Culture.When the EU and UK government relax their control over the licensing of airline provision, the input in the airway will increase, and then the output will also increase with the input. That is the external environment policy affect the change of the internal environment.And the government imposes taxes on high emissions of enterprise, then the cost will rise and the profit will reduce. So the company will decrease production, the airways maybe reduce a few airplane and maybe open up just one or two air lines.Q3: Identify the main differences between the formal and informal organization within Scotia Airways.A3: The Scotia Airways both formal and informal organization characte ristic.The aspects at formal organization characteristic are, it has clear goals, objectives, policies and missions; defined structure, clear division and classification; and the organization will be controlled. For example, the airways currently employ executives and managers in marketing, finance, HR and flight operations with operational and administrative staff within each department. Rosa Dallevic is in overall charge, assisted by her long-term colleague, Azim Ishtiaq. She has also employed the same personal assistant, Katrina Wright. That is a holonomic structure in the company.And the aspect at in formal organization characteristic is, it has ambiguous relationships in the airways. For example,the company is very much regarded as a family-style business and has established a range of suppliers and clients that are seen as the extended family. So it has relaxed and harmonious atmosphere, not very serious and tense.Q4: Describe four primary stakeholders of Scotia Airways and explain their interests in, and influence on the organisation.A4: G overnment: Whether the taxation violate related laws, whether the company compliance to related laws and whether solve the problem of local employment, that are the government concern about, is their interests. The influence in this case is the EU and UK governmentrelax their control over the licensing of airline provision. Then the airways business will improve and the profit will increase, so the government could charge a higher tax.Creditors: The creditors are concern about the credit score, liquidity, repayment ability and new contracts. When to borrow the money and when to return is the most important key to creditors. Only the airways credit rating better, can it borrow much money when they need, so the turnover of the fund more convenient.Investors: Have interest earning income from investment; have profitability, market share and business achievement are the significant matter to the investors. The influence are have big expansion plans and hire a team of administration. The investors in Scotia Airways have set an ambitious programme for expansion over the next 5 years, introducing flights to major European tourist destinations and to establish new branch in Eastern Europe and the Middle and Far East. Besides, They set about appointing a management team whose experience and expertise was firmly grounded in the budget aviation market.Employees: They concern about the rates of pay, job security, respect, truthful communication and work condition. The attitude and enthusiastic in working will influence the quantity and efficiency. The Scotia Airways have t o develop a wide range of rewards and punishment system, let the employees enthusiasm greatly improve.Q5:Identify an effective control strategy that the management of Scotia Airways could successfully implement, and justify its suitability.A5: I think the Bureaucratic control is the most effective control strategy to the Scotia Airways.Bureaucratic control means it can dominate the process, is the use of the determined rules, policies, hierarchy of authority, reward systems and other formal mechanisms to influence employee behavior and assess performance. The advantages are it could increase efficiency of the company, and can be controlled with market or price mechanisms, it is so stable. The disadvantage is the Poor flexibility. Bureaucratic control through the Organization Structure,In Scotia Airways, they begin to appointing a management team in the budget aviation market and currently employs 80 staff across all divisions. Its expansion over recent years has seen the company commit significant resources to the marketing and sales department, its finance department. There has been an increase in staffing levels, in budgets and in capital investment. It currently employs executives and managers in marketing, finance, HR and flight operations with operational and administrative staff within each department. Rosa Dallevic is in overall charge, and she has also employed the same personal assistant, Katrin Wright. In this organization structure, is helped promote consistency and continuity, lead to a positive working relationship within and between different departments. Various departments perform their respective duties, everything in good order and well arranged. The Scotia Airways also have some rules and regulations to guarantee employees behaviors in the company.So the Bureaucratic control is the best choice to the Scotia Airways.Bibliography:1. Stephen P. Robbins, (2008),The Principle of Management, 3edt,Beijing, China Renmin University Pres s Co. LTD2. Stephen P. Robbins, (2012), Organizational Behavior, 4edt,Beijing, China Renmin University Pres s Co. LTD3. Douglas Macgregor, (2008), The human side of enterprise,1edt,Beijing, Chinese International Book Trading Corporation. LTD4. James G.March, Herbert A Simon (2013), Organization, 2edt, Beijing,China Machinery press. LTD。
hnd经济学1微观经济学outcome1
Table of Contents1.0Introduction (1)2.0 Oligopoly (1)Entry barriers (1)Non-price competition (2)3.0 Explanation for Diagram in Oligopoly (2)4.0 Pure Competitive Market (3)Lower prices (3)Low barriers to entry (4)5.0 Explanation for Diagram in Pure Competitive Market 46.0 Roles of Profit in Market Economy (6)Demand for factor resources (6)Market Entry (6)7.0 The other two alternatives to profit maximization (7)Satisficing behaviour (7)Sales revenue maximization (7)8.0 Influences on a Firm in the Short Run (8)9.0 References (9)1.0I ntroductionMarco and Micro economic knowledge we had learned in this period is mainly to discuss about some major market structures in the entire market now. And they are oligopoly, monopoly and pure competitive market and so on. In this case, the Virgin Mobile had entered in mobile phone market in the UK, which is an oligopoly market. In this market, Orange, Vodafone, BT Cellnet and One2One are the oligopolists.2.0O ligopolyWhen a market or industry is dominated by a small number of sellers, we usually believe an oligopoly appears. And there are two main features of oligopoly:Entry barriers: It’s a great block for the new company to be a long-run part of an oligopoly market. Usually, many smaller firms operate on the periphery on such s market, which means these companies cannot reach the supernormal profits or affect much to market prices and output. Take Virgin Mobile (VM) as an example: Before VM engaged in the mobile phone market in the UK, there were some industrial giants conquered the market-Orange, Vodafone, BT Cellnet and One2One, which account for a large market share. Although VM is making profit, the money it earned is far less than any one of these oligopolist.Non-price competition:As a few company be dominant to an industrial, pricing can be no longer an effective competitiveness for those oligopolistic firms. Compared with pricing, after-sales service, extension of new market and advertising seem to be more emphasized by them. In this case, the VM is better to promote the competitiveness in such ways -- improving the after-sales quality, expanding into new markets , building their own brand and so on.3.0E xplanation for Diagram in OligopolyIn the oligopolistic market, the oligopolists may react diversely to the different price variation trend of their rivals. If one oligopolist raises the price and other companies will not follow it to maintain the market share, however, if the company reduce the price and other companies must follow, which is to keep more market shares. It can be seen in the kinked demand curve below.Before the price is higher than P1, the product demand is elastic that means the price raises and the total revenue will reduce. But when the price is lower than P1, the product demand is inelastic -- the price reduces and the total revenue will also do. Thus, the company may able to reach a stable profit-maximizing equilibrium at the point G, so the companies in the oligopolistic market can not change the price optionally.4.0Pure Competitive MarketIn the pure competitive market structure, the company can compete with each other perfectly. There are two common characteristics that are considered to be “competitive”are:Lower prices: Generally, a perfectly competitive market existswhen every participant is a "price taker"which means thesuppliers will have not able to raise price for facing elasticdemand curves, and no participant influences the price of theproduct it buys or sells.( /wiki/Perfect_competition#Basic_structural_characteristics ) .So simply raising price will make a loss of demand and totalrevenue. The cross-price elasticity of demand can reflect thecustomers’attitude towards some particular goods. Thedemand of substitute goods is holding pace with the pricewhen it has any change. Conversely, the demand ofcomplementary goods would decrease when the price increase.In this condition, customers will always find the most propergoods for themselves.Low barriers to entry: Compared with oligopoly, the new firms would be easier to enter in the pure competitive market. Andthe entry of new participants will probably providecompetition and ensure price is kept low in the long run.5.0Explanation for Diagram in Pure Competitive MarketIt is known to all that each individual firm is considered as a pricetaker. Customers may not prefer to buy a product with a higher price. Because of the characteristic (perfect knowledge) of pure competitive market, neither buyers nor sellers can gain an advantage and firm may sell their goods at the point where they have the maximized profit.From the short run view of a firm in a pure competitive market structure, the explanation of the diagram is as follow:The price in a pure competitive market structure is decided by demand and supply, which can be seen in panel on the right. When demand rises from D1 to D2, the equilibrium point goes from A to B and P2 is the established price. Because of the price which a firm use stays at P2, marginal revenue is equal t o P2 at last average revenue is equal to P2 as well. When MC=MR, pr ofit maximization is achieved, so the point which firms will stop prod ucing should be C which ordinate is P2 and abscissa is Q2. Accordingto the diagram above, when quantity is Q2, ATC is equal to P1. So P2 subtract P1 is average profit and then multiply by Q2 can obtain tot al profit.6.0Roles of Profit in Market Economy●Demand for factor resourcesScarce factor resources to flow where the expected rate of return or profit is highest. In the mobile phone market, when Richard Branson started to get profit in 2002, VM has 1,445,492 customers, which means stronger demands, more labour and capital are committed.With more scarce factor resources, VM may able to earn more profit.However, in a recession, the output, incomes and investment for VM must all fall, which may cause the profit loss. Thus the company should take action (for example cutting costs) to preserve its market position.●Market EntryIf an individual company gets more profit than others, it must be a signal to other producers within a market that profitable entry may possible. After three-year efforts, Richard Branson made VM profiting.When it comes, many other firms would be attracted to enter the industry. Thus, the competition would be increased and new products,technologies would be also updated in a higher speed.7.0The other two alternatives to profit maximization●Satisficing behaviourSatisficing behaviour can be the substitute to profit maximization behaviour. This behavioural method lays stress on how decisions are taken within the firm. When a decision is making, satisficing explains that individuals and groups should choose the first option that is good enough to address most needs rather all. Based on Herbert Simon’s work concerning behaviour --“people possess limited cognitive ability and can exercise only ‘bounded rationality’when making decision in complex, uncertain situations”, satisficing behaviour encourages individuals and groups to attain a more realistic goal.If VM set a goal that expending their customers to 2 million in a year, finally it reaches 2.5 million. Thus wise we can take the goal for a receivable.●Sales revenue maximizationThe goal of sales revenue maximization is to maximize the sales other than profits. The managers decision price and strategy of products. In this pattern of management, business can grow or sustain marketshare, ensure survival, discourage competitors, achieve bonuses and build the prestige of the senior management.For the VM, when it initially entered the mobile phone market, it is a great approach that selling their products as many as possible with the lowest profit to enlarge their market share.8.0Influences on a Firm in the Short RunFrom the diagram above, which can be seen are total cost (TC) is the sum of fixed (TFC) and variable costs (TFC).In the beginning, when nothing is being produced ,the fixed costs will be equal to the total cost. The TC and TVC increase concurrently with the quantity, but they are paralleled and the distance between them is TFC which is always invariable. And total cost is an upward trend.The diagram is about the short run cost curves. One time the fixed cost is excessively used, which will lead to the progressive decrease of marginal product, meanwhile the marginal product reduce will lead to the decrease of marginal revenue. Leading the reducing of the ATC when MC<ATC, on the opposite, it will lead to the ATC's increasing. Making the short-run ATC curve look like U-shaped, on the other side, the law of diminishing returns will lead to the rise of marginal cost of pr oduction as output increases.When AVC increasing higher than the fall in AFC one time the output in creases , which the marginal cost is rising will lead to the average total c ost rising9.0References( /wiki/Perfect_competition#Basic_structural_char实用文案acteristics ) .标准文档。
HND 微观经济学1
Contents1.0Introduction------------------------------------------p32.0Body---------------------------------------------------p32.1Market Failure-------------------------------------p32.2Public Goods---------------------------------------p32.3Merit Goods----------------------------------------p32.4Externalities--------------------------------------- p32.5Imperfect Competion-----------------------------p4 2.6 Climate policy----------------------------------------p52.6.1Climate plan------------------------------------p52.6.2Instruments-------------------------------------p52.6.3Result--------------------------------------------p53.0Conclusion------------------------------------------------p64.0Reference--------------------------------------------------p65.0Appendix-------------------------------------------------p71.0 IntroductionThis report’s aim is to explain market failure and the role of government in public goods ,merit goods, externalities and imperfect competition .It also analysis the policy about climate in UK.2.0 Maintain body2.1 Market failureIn economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient.Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient –that can be improved upon from the societal point of view.2.2 Public goodsThe first category is a pure public good, is both non-exclusive and non-competitive; characteristics of the second category of public goods is a non-competitive on the consumer, but it can easily be done less exclusive, some scholars such articles image called club goods; the third category of public goods and club goods is just the opposite, namely competitive in the consumer, but it can not effectively discharge him, some scholars such items as a shared resource or common-pool resource items.But for those with higher implementation costs or smaller scale of demand exclusivity crowded public goods, supply vendors is difficult to obtain a normal profit, the market can not effectively supply. Market mechanisms manifested in the effective supply of public goods incompetence, government intervention in the economy but also to provide an important basis.2.3 Merit GoodsMerit Goods means good for consumers but because of consumer ignorance and lack of consumer goods.For example,Medical ernment must control it. If there is a private charge, the price will change as personal thoughts. Once becomingthe formation of private monopolies, it will definitely lead to serious social ernment become a social’s security.2.4 ExternalitiesI n economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved.Paper mills can be estimated earnings according to the market price of paper, you can estimate costs based on elements of the market price. As long as the benefits outweigh the costs, will increase the production of paper. Paper production will pollute water’s quality, increased social costs of production. However, there is no pure air market,paper dealer will not be forced to bear the cost of air quality and thus the profits of manufacturers will not include this cost estimate.If government don’t intervene it,external effects will never be solved.2.5 Imperfect Competition.In economic theory, imperfect competition is a type of market structure showing some but not all features of competitive markets.Ideal perfectly competitive market economy, based on the normal order of market economy also fully competitive as a precondition.But it is very hard to come true.On the imperfectly competitive market, manufacturers have a lot of market power, they can influence and even determine the market price.Under normal circumstances, the monopoly will give manufacturers to bring excess economic profit. In the absence of sufficient competition exists but excess economic profit, the monopolist often lack the incentives to innovate, there is no initiative to improve production efficiency, which gives the development of productive forces has brought significant obstacle.So government must ernment become a Macro-control person.2.6 Climate policyTo encourage companies to find cost-effective emission reduction and coping measures, the British government has taken measures to climate change levy and implement an emissions trading system and so on, and funded the establishment of Carbon Trust to provide relevant advice and services for enterprises and the public.2.6.1 Climate Change PlanAgainst the greenhouse effect, in November 2000 the British issued a "Climate Change Plan", stated to reach all types of industry "Kyoto Protocol" other emission reduction targets, is scheduled to start from April 2001 climate change levy .It is benefit to reduce the emission of GHG2.6.2 InstrumentBritain was the world's first country to introduce a long-term legislative framework to tackle climate change, "Climate Change Bill" in November 2007 at the Congress started, March 31, 2008 by House of Lords, currently in the House of Commons discussion, the goal is to finish in the fall of 2008 legislative program, to attain formal approval.2.6.3 ResultAccording to the latest annual report of the July 17, 2008 release, the 2007 UK carbon dioxide emission Put the total was 543.7 million tons, compared to emissions in 2006, reducing the 2%; relative reduction 13% in 1990; in 2010 is expected to be able to achieve reduction of 15.5%, which is the first time in 2007 than the year the report is expected to be done to reduce emissions 18%, it seems that the situation is not optimistic, but it does get improvement with some extent.3.0 ConclusionMain economic goals of the government are to adjust the market, make the market good and fast developed.Market failure caused by a series of economic problems, the government must launched more effective policies to prevent the emergence of market failure.Perfect climate policy will help to improve climatic conditionsEU as a group of countries, the emission reduction targets under the "Kyoto Protocol" commitment is to the first commitment period (2008-2012) in 1990 on the basis of emissions 8%. The EU in turn the emission reduction targets internally secondary decomposition, make adjustments based on country-specific circumstances. Low level of development in some countries, like Spain, Portugal, etc., to allow their obligations lightly, while the ultra out of the reductions within the EU accounted for mainly by the leadership of the two great powers - Britain and Germany - to bear.Britain assumed emission reduction obligations for 12.5%, while domestic emission reduction targets established by the UK higher plan in 2010 based on emissions in 1990 by 20% to 60% by 2050. In order to complete the reduction targets, the British established a relatively complete system of domestic climate policy. UK Department for Environment, Food and Rural Affairs as the main department responsible for climate policy, were launched national programs to address climate change in 2000 and twice in 2006, and since 2007, to submit annual reports to assess and report annually to Congress on Climate Change policy implementation and effectiveness.According to the latest annual report of the July 17, 2008 release, the total carbon dioxide emissions from the United Kingdom in 2007 was 543.7 million tons, compared to emissions in 2006, reducing the 2%; relative reduction 13% in 1990; expected 2010 15.5% reduction can do this the first time in 2007 than the annual report is expected to be done to reduce emissions 18%, it seems that the situation is not optimistic. Although 20 percent of emissions from domestic objectives there is a gap, but the completion of the amount still exceeded its statutory obligations, visible emissions problem on British attitudes are more positive.The Guardian2007-03-27For the greenhouse effect, in November 2000 the British issued a "Climate Change Plan", stated to reach all types of industry, "Kyoto Protocol" other emission reduction targets, is scheduled to start from April 2001 climate change levy tax. As of the end of March 2001, the British government (including the environment, transport and local government) and 40 industry groups signed a "climate change levy agreement" (Climlate Change Agreement). Agreement, the industry may choose to cap emissions manner or mode of production of individual units set protocol targets, the government then set a target to reduce the industry on the basis of 20% to 80% of the climate change levy. If no agreement is reached after 2 years reduction targets are, you can not continue to enjoy tax preferential treatment.Faced with diverse and complicated environmental issues, the British government and the industry as early as 1972 began to adopt environmental agreements as a means of environmental policy. At first, the British government in waste treatment countermeasure has warned that if the voluntary program was unable to reach a satisfactory established goals, the Act will take control. In recent years, the United Kingdom when modifying the provisions of the Finance Act, from April 2001 to levy taxes to climate change and to take the government and the energy consumption of industrial environmental agreements signed ways to improve energy efficiency and reduce emissions by up to give businesses mitigate 80 % discount panies are obliged to use energy information, reports production numbers to the Ministry of Environment. Ministry of Environment can appoint an independent supervisor (usually non-governmental organizations) in check, if the goal is to complete the identification card issued by the tax authorities with the identification certificate automatically concessions. While the above enterprise environmental agreements signed between the Government and the taxes associated with the content, is a legal agreement, but the government and the industry never will be as voluntary agreements,as "a gentleman agreement" on the nature of the non-binding law force.De finition of market failureMarket failures have negative effects on the economy because an optimal allocation of resources is not attained. In other words, the social costs of producing the good or service (all of the opportunity costs of the input resources used in its creation) are not minimized, and this results in a waste of some resources.Take, for example, the common argument against minimum wage laws. Minimum wage laws set wages above the going market-clearing wage in an attempt to raise market wages. Critics argue that this higher wage cost will cause employers to hire fewer minimum-wage employees than before the law was implemented. As a result, more minimum wage workers are left unemployed, creating a social cost and resulting in market failure.British "environmental policy" InterpretationClimate Change and Energy: Climate change is the greatest environmental challenge facing the world today, the 2006 UK Climate Change Programme is the UK Government on tackling climate change work's core strategy, which describes the British government policies and measures to reduce greenhouse gas emissions, Meanwhile describes how the British prepared to adapt to climate change impacts. March 2007, the draft law on climate change Britain began public comment. To encourage companies to find cost-effective emission reduction and coping measures, the British government has taken measures to climate change levy and implement an emissions trading system and so on, and funded the establishment of Carbon Trust and the Energy Saving Trust two institutions, enterprises and the public to provide relevant advice and services.。
SQA-HND-商法-OUTCOME1 答案
Outcome 11. The two main areas of law are Criminal and Civil Law.- Criminal lawDefinition: deals with all types of offences过错and crimes, concerns itself with the recognition of what amounts to a crime and the punishments suitable for these recognized crimes.Criminal conduct is the behavior which threatens the safety and security of the community. So the offender should be punished by imprisonment or fine or some other sanctions. Examples: murder, culpable homicide, piracy, treason, armed robbery, supplying illegal drugs, fire raising, assault, fraud, theft, house breaking, dangerous driving, and breach of the peace)- Civil lawDefinition: concerned with non-criminal disputes and situation, including the following:a) The settlement of legal disputes between individuals and other bodies (example: divorce case).b) The payment of compensation from one party to another for loss or injury (example: a case where someone was claiming damages after being injured by faulty machinery at work).c) The setting of procedures to govern financial and other matters (example: the legal procedures to be followed when buying or selling a house).2. Sources of Scots Law are Statute Law, European Union Law, and Common Law or Judicial Precedent.- Common LawDefinition: is a numerous legal rules that form the part of unwritten laws of Scotland which has been handed down to us as customs and practices over the centuries.A major source of Common Law is the practice whereby judges make new rules of law will be followed by other court, so that it is legally binding rules.3. Doctrine of Judicial PrecedentDefinition: is a process involves a process whereby a judge can develop a rule of law by making a decision in a test case. A test case refers to the one in which clarification of an important point of law is sought, and judges after listening to opposite legal arguments will have to make the decision about which view of the law is correct. Once this decision has been made, future judges and course will be expected to follow the reasoning in the test case, if they are dealing with a case with similar legal issues.It must be emphasized that not every judge can make a new binding legal rule. The authority of the judge or court should be considered here, if the judge is relatively junior, he/she will be unlikely to be able to create a new rule of law. But on the other hand, if the rule comes from superior courts, this decision will be followed by the lower or inferior courts.Judicial precedent or case law is parts of the unwritten law of Scotland.Donoghue v Stevneson (1932)4. Westminster Parliament and Scottish Parliament (legislative body)Unlike the previous Scottish Parliament which was abolished by the Act of Union in 1707, the new Scottish Parliament is not a completely independence body. The Scottish Parliament is clear and inferior body compared with the Westminster Parliament.It is the Westminster Parliament from which the Scottish Parliament obtains its authority to pass laws for Scotland. So any legislation of the Scottish Parliament is thought to be secondary legislation.It is also necessary to know that a simple Act of the Westminster Parliament is all that it would take to abolish Scottish Parliament. Westminster Parliament has already abolished a local assembly.Acts of Parliament are often referred to as legislation or statute law until the creation of Scottish Parliament, the Westminster Parliament alone made laws for Scotland. However Westminster has given the Scottish Parliament authority in many different areas of policy to make statute law.Abolition of feudal tenure act 2000The Health and Safety at Work Act 1974Sale of Goods Act 1979Employment Rights Act 1996Protection of Children Act 20035. Civil Law v Criminal Law- Criminal Law is primarily used by the state as a means of maintaining law and border by punishing certain individuals who have the behavior as criminally and antisocially. The State uses the Criminal Law to punish criminals on behalf of the community or sociality.- The Civil Law is to resolve legal disputes between private individuals in such areas as 民事纠纷Family Law, Company Law, Partnership Law, Banking and Finance Law, Sale of Goods and Services Law, Consumer Law, Personal Injury Claims Law, and Divorce.- Different courts and standers of evidence and procedures exist depending on whether we are talking about a criminal action or a civil dispute.Conflict between Scottish and european lawIf there is a conflict between Scottish and European law, the court should obey the rules or laws under European law.The European Union is an organization of 25 member states. The members must obey the rules or laws in order to enjoy the benefits of membership.Britain has been a member of the European Union since January 1, 1973. because of the passing of the European Communities Act 1972 by the Westminster Parliament. It is this legislation that recognizes the supremacy of European Law over the domestic law. By the time Britain became a member of European Union 1973. Many of the important law were already in place and Britainhad to accept this as a price of membership of European Union. But if Britain decides to withdrawal from membership from European Union, then its national law will once again get supremacy.6. The Council of MinistersThe European ParliamentThe European Court of JusticeThe European CommissionThe first two have the power to make laws for the people of European.The third one enforces European Union Law.The forth one is effectively the unions civil service and it can propose law. It can also bring breaches of the varies European Union Treaties to the attention of the European courts of justice. The Commission is regarded as the EU Treaties guardian of the varies European Union Treaties.。
HND演示技巧outcome1
Presentation SkillsF84E 35 (Outcome one)Name:SCN:CLASS:Content pageIntroduction (2)Findings (2)Presentation to banchory residents (2)Presentation to parents and teachers group (4)Presentation to Local councillors (7)Conclusion (9)Reference (9)IntroductionThis report describes 6 ways of speaking, and the analysis of the combination of scenes. PPT, CD-ROM, photographs and pictures, videos , graphs and charts ,objects and models.FindingsPresentation to banchory residentsTwo methods chosen2. CD-ROMHow to use the two methods1. Put pictures, videos and information into the PPT, so as to facilitate the audience more intuitive understanding of the content of the speech. Before the banchory residents into green and new house style are made into a video on ppt. Enterprise speakers can watch the video and residents banchory to explain, so that residents banchory can be very clear to get the answer to the question. Then the road improvement and the issue of housing density through the picture into the PPT, the enterprise speaker through the banchory residents PPT through the picture and explain, so that residents can be very clear to get the answer to the question.2. Residents banchory consider the problem, you can go to find the problem has been solved CD-ROM, so that residents banchory understanding of the problem can be easily solved. This can make residents banchory more simple to understand the content of the speech. The enterprise can make banchory residents look at the speaker and illustrate that banchory residents can get the answer is very clear.Why these have been selectedpurpose of the presentationCompany representatives and residents together discuss proposed problems: density of housing for each site, the new housing fitting in' with existing styles, access and road improvements and landscaping and boundary issues. The purpose of the presentation is to allay fears, answer questions, provide details of proposed housing styles and present an illustration of how the village will look at the end of the development work. PPT and CD-ROM the two speech can alleviate the concerns of banchory residents, because of focus have presented the problem to the banchory residents of these two ways can be clearly, let banchory residents can get a clearer and more comprehensive answer.2. The nature and the size of the audienceThe number of local residents -150 is 100 people banchory, belonging to a large-scale speech. PPT and CD-ROM can use big screen to make the presence of all the banchory residents are heard and seen speech content, and the CD-ROM data to more convincing, can take care of every one in the presence of local banchory residents. The audience all belong to the local residents banchory, and the number of people are more, all of the degree of every culture has. And CD-ROM PPT can take care of people in every level of education, because residents can be through photos and videos to understand the situation. Residents banchory can make a better understanding of the content of the speech.3. The venue of the presentationThis presentation of the site is the village hotel banquet hall can sit 100-150, speech is relatively large site. In the extensive field speech are most worried about is the audience the audience can clearly hear presentations, PPT and CD-ROM wouldn't have such problems, because the PPT and CD-ROM can use big screen playing to the audience the audience clearer and better understanding to all of the content and the answers.AdvantagesPPT has the speaker does not move back and forth.advantage that can make the content more rich, because PPT can put a lot of different knowledge, such as photos and videos.3. PPT advantage that can combine the sound.4. PPT advantage is convenient and quick.5. Advantage of the CD-ROM it is convenient to copy computer data to CD.6. Advantage of the CD-ROM is a large amount of data.Disadvantages1. The disadvantage is that ppt computer emergency situation is not good control.2. ppt drawback is dark environment.3. The disadvantage of CD-ROM is that CD-ROM can only use the content, can not be modified.4. The disadvantage of CD-ROM is that it is easy to be damaged, and the data is gone.Presentation to parents and teachers groupTwo methods chosen1. photographs and pictures2. videosHow to use the two methods1. Enterprise speaker can advance the picture of the planning area to see parents and teachers group, which can be more intuitive and real audience to understand the contents of the speech.Each speaker can give the audience a picture made, every listener can be more detailed and comprehensive picture of the learned new classrooms and new playground look.Parents and teachers group to see the pictures,you can integrated the various aspects to make recommendations, companies can put proposals to modify the record.2. Enterprise speaker can give parents and teachers group videos to explain the contents of the videos in the audience can quickly get the point. In his speech, parents and teachers group needs more intuitive, so use videos to presentations more persuasive. Enterprise speaker can put new classrooms and new playground analog videos presented to parents and teachers group, so parents and teachers group can be very detailed to watch the speech focus and make recommendations.Why these have been selected1. The purpose of the presentationCompany representatives, parents and teachers gathering together discuss the construction of the new adventure play area, new wildlife garden, including a pond, and updating school library with more 'quiet zones' and 15 new computers. The aim of this presentation is to present to parents and teachers the proposed plans for these areas and to encourage them to recommend ideas and suggestions. The local council is also taking this opportunity to upgrade existing facilities in the school. photographs and pictures and videos of these two methods can be fully speech to the audience to provide comprehensive and detailed information that allows parents and teachers group fully understand the new classrooms and a new playground, detailed pictures and videos can make listeners Presentations more understanding. Clarity, better advice.2. The nature and the size of the audienceThe number of listeners initially set at 18 people, which is a small-scale presentations, the speakers and audience interaction is very important. photographs and pictures and videos of these two speeches are suitable for small-scale ways of speech, Because corporate spokesman and let parents and teachers group to better face to face communication, making communication more accuracy. The speaker can use pictures and videos to answer audience questions, you can also interact with the audience, take advice.3. The venue of the presentationSpeech venue is a large classroom, the size of the classroom is limited, so the site will not be very broad. And the equipment of the classroom is very comprehensive, so the speaker with videos and photographs and pictures these two kinds of speech is very appropriate. These two methods are more convenient for the interaction between the speaker and the audience. Can maximize the effect of the speech, and be able to absorb better recommendations.Advantages1. The advantage of photographs and pictures is to give people the impression deeply, the effect is good.2. The advantage of photographs and pictures is that the picture is vivid and concise.3. Photographs and pictures advantage is high, the picture can be better reflected.4. The advantages of photographs and pictures is a high concrete, pictures can take the language specific presentation in front of the audience.5. Videos advantage is high efficiency and improve the effect of speech.6. Advantage of videos is real high, real videos are shot.Disadvantages1. The disadvantage photographs and pictures it is inconvenient to take notes.2. The disadvantage photographs and pictures that the audience will feel boring.3. The disadvantage is inconvenient to record videos.4. The disadvantage is that videos during playback, may cause the listener's attention is not focused.Presentation to Local councillorsTwo methods chosen1. graphs and charts2. objects and modelsHow to use the two methods1. Enterprises can use the speakers in detail and charts to explain the content of the speech to local councillors, so you can make the audience better understand the content of speech. To speak to local councillors is very formal, the graphs and charts presented to the local councillors is more appropriate. Business speaker in the form of a chart to the traffic survey data presented to the audience, the audience focus on the content can be found in the chart.2. Corporate speakers can be carried out after the graph model entities to explain the content to local councillors, allowing the audience clearly see and feel the expansion of the village simulation. And give local councillors very formal speech, objects and models used in formal speech speech mode. Companies can give each speaker a local councillors see, get in front of each listener, so local councillors can be very detailed understanding of the situation and can make good suggestions.Why these have been selected1. The purpose of the presentationRepresentatives of the company and local members together discuss finalized timetable for project starting spring of next year, data from traffic survey carried out by QinitiQ along with their predicted figures for traffic flow on project completion and recommendations from Scottish Natural Heritage (SNH) on native tree planting proposal. Within the council there has been strong support for expansion of existing villages as opposed to establishing new villages. Graphs and charts can be formal way this speech to the audience and explain in detail the content of the speech, objects and models can be more intuitive and clearly explain the contents of the speech can be made more efficient.2. The nature and the size of the audienceThis meeting will take place in the council chambers and there will be a group of 35 people which consists of councillors and representatives from planning, roads and transport and environmental services. The speech 35 audience, a medium size. Enterprises should pay attention to the speaker and every local councillors interaction, Graphs and charts can be used to chart the performance of the content and the ability for everyone to communicate, when rendered objects and models so that we can more intuitive understanding of the content of speech.3. The venue of the presentationSpeech is the place of the meeting room, is a very formal place. It is necessary to use concrete data and detailed accessories to make the speech more formal and professional. graphs and charts speech mode and speech mode objects and models in a formal occasion to explain to the audience the content of speech, so that the audience better understand the presentation content and more explicit.Advantages1.Advantages graphs and charts of high authenticity, charts are based on real information made.2.Advantages graphs and charts is convincing high.3.Advantages graphs and charts that make speech very intuitive.4.Advantages graphs and charts is to make a more detailed presentation.5.Advantages objects and models is more formal, more suitable for speech.6.Advantages objects and models is persuasive relatively large, we can look at the model to explain at the same time.Disadvantages1. The disadvantage graphs and charts that fit in a certain field, people with expertise to understand and intuitive content.2. The disadvantage graphs and charts is the long production time.3. The disadvantage objects and models is not convenient to carry.4. The disadvantage objects and models have cost too costly.ConclusionThis report introduces 6 ways of speaking in 3 scenarios. Respectively is PPT, CD-ROM, photographs and pictures, videos , graphs and charts ,objects and models. And combined with the scene for the purpose of speech, the number of speech and speech scene for a detailed analysis. And summed up the advantages and disadvantages of the 6 ways of speech.ReferenceScottish Qualifications Authority,(2006).Presentation Skills, Peking Economic Times Press,11-31.。
HND市场学导论outcome1【范本模板】
Marketing: An IntroductionContentsIntroduction (3)Marketing concept (3)Pay attention to market research (3)Corporate Profit (3)Pay attention to the marketing plan (3)Marketing Orientation and Customer Relationship Management (4)After Service (4)The marketing environment (4)Types of Marketing Environment (5)Marketing Research＆Information： (5)Find out en terprise’s problems and mistakes (5)Market Segmentation (5)Opponents of information (6)Marketing plan (6)Market research and information Introduction (6)Quantitative&Qualitative Research (6)Qualitative Research (6)In—depth interviews (6)Quantitative research (7)Face-to-Face surveys： (7)Segmentation ＆targeting (8)Research information (8)Market segmentation (8)Benefits of Market S&T (8)Conclusion (9)Reference (9)IntroductionThis report is writes for the Trusty—Land Food Company. The report consists of 5 point that includes the marketing environment segmentation and targeting，the market research and information and marketing conception。
hnd经济学outcome
How to compare growth rates of different countries
• NI growth rate (%)
country 2000
A
3.5
Government Spending (G) and Taxation (T)
• Government taxes both the household and business, so that taxes (T) are withdraw.
• Example: direct tax (income tax) and indirect tax (sales taxes). In detail, value added tax (VAT), Capital gains tax, Corporation tax, Environment Affecting Tax, Inheritance tax, Property tax, etc.
Difficulties of measuring National Income
1. Arbitrary definition of production (what should and should not be measured).
2. Value of service rendered by consumer durable goods. 3. Inadequate Information. 4. Danger of double counting. 5. Problems in making comparisons over time and between
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Table of ContentsIntroduction (1)Oligopoly (1)●Entry barriers (1)●Non-price competition (1)Explanation for Diagram in Oligopoly (2)Pure Competitive Market (3)●Lower prices (3)●Low barriers to entry (3)Explanation for Diagram in Pure Competitive Market (3)Roles of Profit in Market Economy (4)●Demand for factor resources (4)●Market Entry (5)The other two alternatives to profit maximization (5)●Satisficing behaviour (5)●Sales revenue maximization (5)Influences on a Firm in the Short Run (6)References (7)1.0IntroductionMarco and Micro economic knowledge we had learned in this period is mainly to discuss about some major market structures in the entire market now. And they are oligopoly, monopoly and pure competitive market and so on. In this case, the Virgin Mobile had entered in mobile phone market in the UK, which is an oligopoly market. In this market, Orange, V odafone, BT Cellnet and One2One are the oligopolists.2.0OligopolyWhen a market or industry is dominated by a small number of sellers, we usually believe an oligopoly appears. And there are two main features of oligopoly:●Entry barriers: It’s a great block for the new company to be a long-run partof an oligopoly market. Usually, many smaller firms operate on the periphery on such s market, which means these companies cannot reach the supernormal profits or affect much to market prices and output. Take Virgin Mobile (VM) as an example: Before VM engaged in the mobile phone market in the UK, there were some industrial giants conquered the market- Orange, V odafone, BT Cellnet and One2One, which account for a large market share.Although VM is making profit, the money it earned is far less than any one of these oligopolist.●Non-price competition:As a few company be dominant to an industrial,pricing can be no longer an effective competitiveness for those oligopolistic firms. Compared with pricing, after-sales service, extension of new market and advertising seem to be more emphasized by them. In this case, the VM is better to promote the competitiveness in such ways -- improving the after-sales quality, expanding into new markets , building their own brand and so on.3.0Explanation for Diagram in OligopolyIn the oligopolistic market, the oligopolists may react diversely to the different price variation trend of their rivals. If one oligopolist raises the price and other companies will not follow it to maintain the market share, however, if the company reduce the price and other companies must follow, which is to keep more market shares. It can be seen in the kinked demand curve below.Before the price is higher than P1, the product demand is elastic that means the price raises and the total revenue will reduce. But when the price is lower than P1, the product demand is inelastic -- the price reduces and the total revenue will also do. Thus, the company may able to reach a stable profit-maximizing equilibrium at the point G, so the companies in the oligopolistic market can not change the price optionally.4.0Pure Competitive MarketIn the pure competitive market structure, the company can compete with each other perfectly. There are two common characteristics that are considered to be “competitive” are:●Lower prices: Generally, a perfectly competitive market exists whenevery participant is a "price taker"which means the suppliers will have notable to raise price for facing elastic demand curves, and no participantinfluences the price of the product it buys or sells. ( ) .So simply raising price will make a loss of demand and total revenue. Thecross-price elasticity of demand can reflect the customers’ attitude towardssome particular goods. The demand of substitute goods is holding pacewith the price when it has any change. Conversely, the demand ofcomplementary goods would decrease when the price increase. In thiscondition, customers will always find the most proper goods forthemselves.●Low barriers to entry: Compared with oligopoly, the new firms wouldbe easier to enter in the pure competitive market. And the entry of newparticipants will probably provide competition and ensure price is keptlow in the long run.5.0Explanation for Diagram in Pure Competitive MarketIt is known to all that each individual firm is considered as a price taker.Customers may not prefer to buy a product with a higher price. Because of the characteristic (perfect knowledge) of pure competitive market, neither buyers nor sellers can gain an advantage and firm may sell their goods at the point where they have the maximized profit.From the short run view of a firm in a pure competitive market structure, the explanation of the diagram is as follow:The price in a pure competitive market structure is decided by demand and supply, which can be seen in panel on the right. When demand rises from D1 to D2, the equilibrium point goes from A to B and P2 is the established price. Because of the price which a firm use stays at P2, marginal revenue is equal to P2 at last a verage revenue is equal to P2 as well. When MC=MR, profit maximization is achi eved, so the point which firms will stop producing should be C which ordinate is P2 and abscissa is Q2. According to the diagram above, when quantity is Q2, ATC is equal to P1. So P2 subtract P1 is average profit and then multiply by Q2 can obta in total profit.6.0Roles of Profit in Market EconomyDemand for factor resourcesScarce factor resources to flow where the expected rate of return or profit is highest. In the mobile phone market, when Richard Branson started to get profit in 2002, VM has 1,445,492 customers, which means stronger demands, more labour and capital are committed. With more scarce factor resources, VM may able to earn more profit. However, in a recession, the output, incomes andinvestment for VM must all fall, which may cause the profit loss. Thus the company should take action (for example cutting costs) to preserve its market position.●Market EntryIf an individual company gets more profit than others, it must be a signal to other producers within a market that profitable entry may possible. After three-year efforts, Richard Branson made VM profiting. When it comes, many other firms would be attracted to enter the industry. Thus, the competition would be increased and new products, technologies would be also updated in a higher speed.7.0The other two alternatives to profit maximization●Satisficing behaviourSatisficing behaviour can be the substitute to profit maximization behaviour. This behavioural method lays stress on how decisions are taken within the firm. Whena decision is making, satisficing explains that individuals and groups shouldchoose the first option that is good enough to address most needs rather all. Based on Herbert Simon’s work concerning behaviour --“people possess limited cognitive ability and can exercise only ‘bounded rationality’ when making decision in complex, uncertain situations”, satisficing behaviour encourages individuals and groups to attain a more realistic goal.If VM set a goal that expending their customers to 2 million in a year, finally it reaches million. Thus wise we can take the goal for a receivable.●Sales revenue maximizationThe goal of sales revenue maximization is to maximize the sales other than profits.The managers decision price and strategy of products. In this pattern of management, business can grow or sustain market share, ensure survival, discourage competitors, achieve bonuses and build the prestige of the senior management.For the VM, when it initially entered the mobile phone market, it is a great approach that selling their products as many as possible with the lowest profit to enlarge their market share.8.0Influences on a Firm in the Short RunFrom the diagram above, which can be seen are total cost (TC) is the sum of fixed (TFC) and variable costs (TFC).In the beginning, when nothing is being produced ,the fixed costs will be equal to the total cost. The TC and TVC increase concurrently with the quantity, but they are paralleled and the distance betweenThe diagram is about the short run cost curves. One time the fixed cost is excessivelyused, which will lead to the progressive decrease of marginal product, meanwhile the marginal product reduce will lead to the decrease of marginal revenue. Leading the reducing of the ATC when MC<ATC, on the opposite, it will lead to the ATC's increasing. Making the short-run ATC curve look like U-shaped, on the other side, the law of diminishing returns will lead to the rise of marginal cost of production as o utput increases.When AVC increasing higher than the fall in AFC one time the output increases , whi ch the marginal cost is rising will lead to the average total cost rising9.0References( ) .。